Key Points
Ethereum’s Market Surge
Ethereum experienced a significant increase, crossing the $3,400 threshold as the political climate shifted towards the presidential inauguration. After a challenging week from January 11 to 17, Ethereum (ETH) ended its downward trajectory and surpassed its previous resistance level of $3,400. It is currently trading at $3,406.72.
This positive market sentiment is fueled by speculations that President-elect Donald Trump might sign a cryptocurrency-related executive order upon assuming office on January 20. There are ongoing discussions about this order potentially directing all federal agencies to review their crypto policies and possibly halting ongoing lawsuits against industry leaders.
In anticipation of a leadership change, the SEC settled with Abra over unregistered crypto lending products. This decision has positively influenced the entire crypto market, which experienced a 3.54% increase in the last 24 hours, according to CoinMarketCap.
Trump’s crypto-friendly position is further solidified with the election of pro-crypto Congressman Tom Emmer as Vice Chair of the Digital Assets Subcommittee on January 15.
Pectra Upgrade and Ethereum’s Future
Another factor contributing to Ethereum’s rise is the announcement of the upcoming Pectra Upgrade’s launch in the Execution Layer Meeting 203. The Pectra upgrade is eagerly anticipated as a potential solution to some of Ethereum’s most significant challenges.
Over the years, Ethereum has struggled with congestion and high gas fees. The Pectra upgrade aims to enhance the consensus layer, improve transaction speed and efficiency, and lay the foundation for seamless interoperability between the Layer 2 solutions and the mainnet. This is especially crucial for the future expansion of blockchain.
According to the Moving Average Convergence Divergence (MACD) chart, Ethereum is currently providing buy signals. This suggests that, at least in the short term, some upward momentum in price increases can be expected.
The MACD measures changes in momentum and indicates likely price trends, while HODL Waves reflect long-term holding behavior. Together, they provide insight into potential future price movements.
The holding wave, HODL, shows strong long-term holding sentiment, with a significant supply of Ethereum being held for more than twelve months. This demonstrates enduring investor confidence and reduced short-term selling pressure. Despite these positive indicators, Ethereum prices may experience minor fluctuations as the market adjusts to these developments.
